Yes, desktop development is very much alive. I see people working with desktop applications all of the time. However, I do believe ultimately what we call "mobile" will gain capabilities to replace what was traditionally "desktop" and what used to be the tower sitting under our desk will be replaced by compute power in the cloud. That used to seem so unrealistic but as WiFi and cellular network coverage evolves and spreads, I imagine we'll start to find our experiences are no longer about what platform or device but more about what is the back end service that drives it and which interface do we want to use to experience it. Personally I'm a fan of eventually sitting in a cafe wearing augmented reality glasses typing on air.